Barcelona is once again making progress on one of its most eagerly awaited public housing projects: the construction of a residential complex for older people in the Salut neighbourhood, on the site formerly occupied by the Clínica Quirón. After more than two years at a complete standstill, work has restarted thanks to the intervention of Barcelona City Council, which has had to absorb a significant cost overrun to keep the project on track.
What is being built and where?
The project, known as Espai Quirón, involves the construction of 83 publicly owned dwellings for older people, alongside community facilities for use by the local neighbourhood. The site is located on Avinguda de la Mare de Déu de Montserrat, an established part of the city that has been waiting over a decade to see this project become a reality.
This is a prime example of how public housing projects can run into serious obstacles: in this instance, the insolvency of the original contractor brought construction to a complete halt for two years, with all the consequences that entails for the neighbourhood and for the people hoping to move into these homes.
A budget that has grown considerably
To resume work, the council has had to revise the project's original budget upwards by around 5 million euros. This increase reflects a reality affecting the entire construction industry: material and labour costs have risen significantly in recent years, and any project that is paused for an extended period inevitably ends up paying that price.
Budget overruns of this kind are not unique to large public developments. Residents' communities that postpone major works — façades, roofs, building systems — often find that the quote they turned down two or three years ago is now considerably more expensive. Construction inflation waits for no one.
What does this case tell us about the housing market in Barcelona?
Beyond the specifics of this project, the story raises several points worth considering for property owners and investors in Barcelona and the surrounding area:
- Demand for age-adapted housing is growing. An ageing population is making this one of the most active segments of the market in the years ahead, both in the public and private sectors.
- Construction delays carry a real cost. Halting a project does not freeze its price — quite the opposite, it tends to push costs higher. This applies equally to a large development and to a refurbishment of your community's entrance hall.
- Public housing supply remains insufficient. Projects such as this one, announced over a decade ago and still under construction, highlight the enormous gap between demand for affordable housing and the available supply in the city.
- Contractor insolvency is a genuine risk. Whether in private developments or community contracts, choosing the right building company and securing adequate guarantees is essential.
The impact on nearby residents' communities
For those who live in or own property in the neighbourhoods close to la Salut, Gràcia or the Eixample, the resumption of works on a long-idle site is always welcome news. The revitalisation of the built environment has a direct bearing on the value of nearby properties and on the overall perception of the neighbourhood.
In areas such as the Maresme — from El Masnou to Mataró — and in Costa Brava towns such as Blanes or Palamós, similar projects combining housing for older people with public facilities are transforming neighbourhoods and generating new dynamics in the local market. The trend is clear: age-adapted housing and mixed-use developments (residential plus community facilities) are gaining ground across the wider metropolitan area and beyond.
Questions about your community or property investment?
Whether you are a property owner, a member of a residents' community, or considering a property investment in Barcelona, the Maresme or the Costa Brava, Fincas Caseuro has been helping clients make the right decisions for over 30 years — from community management and works supervision to advice on buying, selling and letting. Do not hesitate to get in touch with our team; we will be delighted to guide you with no obligation.